Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. 14

Cash

Account

Bank

Statement

Balance as of 6/30/2018

$

23,540

$

20,285

Deposit in transit

4,475

Outstanding checks

(385

)

Note collected by bank

2,250

Bank service charge

(15

)

NSF check

(1,400

)

Adjusted cash balance as of 6/30/2018

$

24,375

$

24,375

When reviewing the bank reconciliation, Zocar's auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk who reconciles the bank account and records the adjusting entries could not find the actual NSF check that should have been included in the bank statement. Finally, there was no specific reference in the accounts receivable supporting records identifying a party who had written a bad check.

Required

1. Prepare the adjusting entry that the clerk would have made to record the NSF check. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)